In the rapidly evolving tech landscape, understanding which companies to invest in can be daunting. Today, I’ll analyze two prominent players: Teradata Corporation (TDC) and Domo, Inc. (DOMO). Both operate in the software sector but focus on different applications within data management and analytics. Teradata specializes in enterprise analytics with a multi-cloud data platform, while Domo offers a cloud-based business intelligence solution. Join me as I explore which of these companies holds greater potential for investors like you.
Table of contents
Company Overview
Teradata Corporation Overview
Teradata Corporation (TDC) is a leading player in the software infrastructure sector, primarily focusing on enterprise analytics through its connected multi-cloud data platform, Teradata Vantage. Founded in 1979 and headquartered in San Diego, California, Teradata enables organizations to harness their data effectively, supporting clients across various industries like healthcare, finance, and retail. The company emphasizes simplifying data ecosystems and aiding clients in their cloud migration journeys, thereby enhancing their analytical capabilities. With a market capitalization of approximately $2.86B, Teradata serves its global clientele through a direct sales force, reflecting its strong commitment to delivering value through data-driven insights.
Domo, Inc. Overview
Domo, Inc. (DOMO) operates a cloud-based business intelligence platform that connects all levels of an organization—from executives to frontline employees—with real-time data and insights. Founded in 2010 and based in American Fork, Utah, Domo’s platform allows users to manage their business operations directly from their smartphones, streamlining decision-making processes. Despite a smaller market capitalization of about $347M, Domo’s innovative approach positions it as a significant player in the application software industry, particularly focused on empowering organizations with immediate access to critical data.
Key similarities and differences
Both Teradata and Domo operate within the technology sector but focus on different aspects of data management. Teradata specializes in enterprise-level analytics and multi-cloud platforms, emphasizing large-scale data integration and analytics. In contrast, Domo concentrates on real-time business intelligence and user accessibility, targeting a broader audience from executives to operational staff. While both companies aim to enhance data-driven decision-making, their business models cater to different segments of the data analytics market.
Income Statement Comparison
The following table provides a comparative overview of the most recent income statements for Teradata Corporation (TDC) and Domo, Inc. (DOMO), highlighting key financial metrics for evaluation.
| Metric | TDC | DOMO |
|---|---|---|
| Market Cap | 2.86B | 347M |
| Revenue | 1.75B | 317M |
| EBITDA | 293M | -50M |
| EBIT | 193M | -59M |
| Net Income | 114M | -82M |
| EPS | 1.18 | -2.13 |
| Fiscal Year | 2024 | 2025 |
Interpretation of Income Statement
In the most recent fiscal year, Teradata Corporation reported a revenue of 1.75B, down from 1.83B, indicating a slight decline amidst competitive pressures. However, TDC’s net income improved to 114M, reflecting effective cost management strategies, particularly in operating expenses, which led to stable margins. Conversely, Domo, Inc. continues to face challenges, reporting a revenue of 317M, which is stable year-over-year, yet the company remains unprofitable with a net loss of 82M. This highlights the ongoing struggle for profitability, as margins continue to be under pressure.
Financial Ratios Comparison
The following table provides a comparative analysis of the most recent financial metrics for Teradata Corporation (TDC) and Domo, Inc. (DOMO).
| Metric | TDC | DOMO |
|---|---|---|
| ROE | 85.71% | -462.27% |
| ROIC | 16.89% | -197.65% |
| P/E | 26.34 | N/A |
| P/B | 22.58 | N/A |
| Current Ratio | 0.81 | 0.56 |
| Quick Ratio | 0.79 | 0.56 |
| D/E | 4.33 | -0.76 |
| Debt-to-Assets | 33.80% | 63.23% |
| Interest Coverage | 7.21 | N/A |
| Asset Turnover | 1.03 | 1.48 |
| Fixed Asset Turnover | 9.07 | 8.17 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
In comparing TDC with DOMO, TDC exhibits robust financial health with strong return ratios, a manageable debt level, and good coverage of interest expenses. On the other hand, DOMO shows concerning metrics with negative returns on equity and significant debt to assets, indicating financial distress. The current and quick ratios suggest liquidity issues for DOMO, raising potential red flags for investors considering either company.
Dividend and Shareholder Returns
Teradata Corporation (TDC) does not pay dividends, reflecting a strategy focused on reinvestment for growth during its current phase, which may be critical for long-term value creation. The company does not have a dividend payout ratio and instead emphasizes share buybacks to enhance shareholder value. Conversely, Domo, Inc. also refrains from distributing dividends, prioritizing R&D and expansion efforts. Both companies are committed to using available cash for share repurchases, suggesting a focus on enhancing shareholder returns through capital appreciation rather than immediate income. This approach may support sustainable long-term value creation, provided they manage operational risks effectively.
Strategic Positioning
In the competitive landscape of the software sector, Teradata Corporation (TDC) holds a market cap of $2.86B, emphasizing its strong position in enterprise analytics through its multi-cloud data platform. With a beta of 0.61, it exhibits stability amidst market fluctuations. Conversely, Domo, Inc. (DOMO) has a smaller market cap of $347M and a higher beta of 1.76, indicating greater volatility. Both companies face intense competition and must navigate technological disruptions to maintain their market share.
Stock Comparison
In the past year, both Teradata Corporation (TDC) and Domo, Inc. (DOMO) have experienced significant price movements, reflecting the ongoing trading dynamics and investor sentiment in their respective markets.
Trend Analysis
For Teradata Corporation (TDC), the overall price change over the past year is -37.01%, indicating a bearish trend. The stock has shown notable volatility with a standard deviation of 7.15, and it reached a high of 48.99 and a low of 19.73. The recent trend analysis from September 21, 2025, to December 7, 2025, shows a recovery with a price change of +37.07%, suggesting a potentially bullish short-term movement, although the long-term perspective remains negative due to overall performance.
Domo, Inc. (DOMO) has seen a price change of -6.8% over the past year, also categorizing it as bearish. This stock has displayed less volatility with a standard deviation of 2.99. The highest price reached was 18.06, and the lowest was 6.62. In the recent period from September 21, 2025, to December 7, 2025, DOMO’s price decreased significantly by -51.59%, indicating a strong bearish momentum and a trend of deceleration.
In summary, while TDC shows signs of a potential short-term bullish recovery, the longer-term bearish trend requires careful consideration. Conversely, DOMO’s recent performance underscores a more pronounced bearish trend, necessitating caution for investors looking to enter or hold this stock.
Analyst Opinions
Recent analyst recommendations for Teradata Corporation (TDC) indicate a strong buy with a rating of B+, primarily due to high scores in return on equity and discounted cash flow. Analysts highlight its solid fundamentals and growth potential. On the other hand, Domo, Inc. (DOMO) received a C rating, with analysts recommending a hold, citing concerns over its cash flow despite a decent return on equity. The consensus for TDC is a buy, while DOMO leans towards a cautious hold.
Stock Grades
Recent evaluations from reputable grading companies show varying trends for the stocks of Teradata Corporation (TDC) and Domo, Inc. (DOMO). Below is a detailed look at their current grades.
Teradata Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citizens | upgrade | Market Outperform | 2025-11-10 |
| Evercore ISI Group | maintain | Outperform | 2025-11-05 |
| Barclays | maintain | Underweight | 2025-11-05 |
| TD Cowen | maintain | Hold | 2025-11-05 |
| UBS | maintain | Neutral | 2025-08-06 |
| Guggenheim | maintain | Buy | 2025-05-07 |
| Barclays | maintain | Underweight | 2025-04-21 |
| Citizens Capital Markets | maintain | Market Perform | 2025-03-18 |
| JMP Securities | maintain | Market Perform | 2025-02-13 |
| RBC Capital | maintain | Sector Perform | 2025-02-12 |
Domo, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| TD Cowen | maintain | Buy | 2025-12-05 |
| DA Davidson | maintain | Neutral | 2025-12-01 |
| JMP Securities | maintain | Market Outperform | 2025-09-10 |
| DA Davidson | maintain | Neutral | 2025-08-28 |
| Cantor Fitzgerald | maintain | Overweight | 2025-08-28 |
| TD Cowen | upgrade | Buy | 2025-08-26 |
| JMP Securities | maintain | Market Outperform | 2025-06-25 |
| Cantor Fitzgerald | maintain | Overweight | 2025-06-25 |
| Cantor Fitzgerald | maintain | Overweight | 2025-05-22 |
| Lake Street | maintain | Hold | 2025-05-22 |
The overall trend for Teradata shows a slight upgrade in its market performance outlook, while Domo maintains a stable position with consistent grades across various reputable firms. Notably, Teradata’s recent upgrade to “Market Outperform” suggests increasing investor confidence, whereas Domo’s steady grades indicate sustained performance expectations.
Target Prices
The consensus target prices for the stocks under review are as follows:
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Teradata Corporation (TDC) | 24 | 24 | 24 |
| Domo, Inc. (DOMO) | 50 | 10 | 22.5 |
For Teradata Corporation, analysts expect the stock to reach a consensus of $24, while the current market price is $30.13, indicating a potential downside. Conversely, Domo, Inc. has a broader consensus target of $22.5, which is notably higher than its current price of $8.745, suggesting potential growth opportunities.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Teradata Corporation (TDC) and Domo, Inc. (DOMO) based on the most recent data available.
| Criterion | Teradata Corporation (TDC) | Domo, Inc. (DOMO) |
|---|---|---|
| Diversification | Strong multi-cloud platform | Limited market presence |
| Profitability | Positive net profit margin (6.5%) | Negative net profit margin (-25.8%) |
| Innovation | High R&D investment | Focus on user-friendly BI tools |
| Global presence | Established in multiple regions | Limited international reach |
| Market Share | Significant in analytics | Small share in BI market |
| Debt level | High debt-to-equity ratio (4.3) | High debt-to-assets ratio (63.2%) |
Key takeaways reveal that Teradata Corporation exhibits a stronger profitability and global presence compared to Domo, which struggles with substantial losses and limited reach. However, both companies face high debt levels, indicating financial caution is necessary.
Risk Analysis
The following table outlines the key risks associated with Teradata Corporation (TDC) and Domo, Inc. (DOMO).
| Metric | Teradata Corporation (TDC) | Domo, Inc. (DOMO) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Low | High |
In summary, TDC faces moderate risks overall, while DOMO is exposed to higher operational and market risks, compounded by its recent financial struggles, including negative profit margins and high debt levels. Investors should be cautious when considering DOMO due to its elevated risk profile.
Which one to choose?
When comparing Teradata Corporation (TDC) and Domo, Inc. (DOMO), the fundamentals suggest a clear distinction in performance and risk profile. TDC holds a market cap of 3B and demonstrates solid profitability with a net margin of 6.5% and a B+ rating from analysts, indicating robust operational efficiency. In contrast, DOMO, valued at 326M, continues to struggle with negative margins and a C rating, reflecting challenges in profitability.
From a valuation perspective, TDC’s P/E ratio stands at approximately 26, while DOMO’s is negative, signifying a lack of earnings. Recent stock trends also reveal TDC’s bearish trajectory, with a 37% decline, compared to DOMO’s 6.8% drop.
Investors focused on growth might find more potential in TDC, while those valuing stability may steer clear of DOMO due to its ongoing financial struggles. However, inherent risks exist in both companies, particularly regarding TDC’s competitive landscape and DOMO’s market dependence.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Teradata Corporation and Domo, Inc. to enhance your investment decisions:
